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Bombay Rayon Fashions Ltd. Stock Analysis

Small Cap
Evaluated by 759 users | BSE: 532678 | NSE: BRFL |
Textile
Bombay Rayon Fashions (BRFL) was incorporated in 1992 and is engaged into manufacturing of fabrics and apparels. BRFL manufactures one of the most versatile and technically advanced fabrics and apparels in India. Presently, the company is the largest shirt manufacturer in India. Currently, it...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bombay Rayon Fashions Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.32%5.84%5.54%2.12%3.89%5.4%3.96%0.11%-17.64%-20.44%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,2552,7353,1952,9073,5334,1723,8773,088941488
Y-o-Y Gr. Rt.-21.3%16.8%-9%21.5%18.1%-7.1%-20.3%-69.5%-48.2%
Adjusted EPS (Rs.) 17.2115.0513.55-11.95-6.690.27-8.41-9.01-52.66-50.94
Y-o-Y Gr. Rt.--12.6%-10%-188.2%NANA-3214.8%NANANA
Book Value per Share (Rs.) 201.65217.86231.89201.44194.49141.56140.08133.5980.4621.28
Adjusted Net Profit 220203182-161-90.13.7-156-286-1,672-1,617
Net Op. Cash Flow (Rs. Cr.) -2.6288510-838573448281-1613.3-366
Debt to Cash Flow from Ops -1,211.4912.137.77-5.579.3112.5919.98-25.411,346.96-13.74
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bombay Rayon Fashions Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -15.6%-32.7%-49.9%-48.2%
Adjusted EPS -212.8%NANANA
Book Value per Share -22.1-35.8-46.6-73.6
Share Price -29.5% -42.7% -58.9% 179.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 9.587.185.93-5.42-3.320.16-6.79-8.24-48.5-97.17
Operating Profit Margin (%) 23.9926.7726.3415.5916.118.315.466.44-192.19-392.28
Net Profit Margin (%) 9.767.415.71-5.53-2.550.09-4.04-9.26-177.57-331.4
Debt to Equity 1.211.191.271.722.042.962.160.961.747.43
Working Capital Days 3553924185415034535166961,9642,498
Cash Conversion Cycle 1782012243043013013815501,6371,977
Entity Percentage Holding
Promoters 35.57%
Institutions 56.29%
Non-Institutions 8.14%
Pledged *52.4849.5150.6450.6150.5250.3450.1150.1150.1149.07
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bombay Rayon Fashions Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bombay Rayon Fashions Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bombay Rayon Fashions Ltd.'s performance infers:

Bombay Rayon Fashions Ltd. earnings have grown by 0%, whereas share price has depreciated -42.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bombay Rayon Fashions Ltd. share prices over the last 10 years. Here is what we found out:

Bombay Rayon Fashions Ltd. share price has depreciated -24.9% annually over the past ten years.

Bombay Rayon Fashions (BRFL) was incorporated in 1992 and is engaged into manufacturing of fabrics and apparels. BRFL manufactures one of the most versatile and technically advanced fabrics and apparels in India. Presently, the company is the largest shirt manufacturer in India.

Currently, it has employee strength of 32000 people. Its fabric division manufactures 55 million meters per annum. Its garment unit manufactures 35 million pieces per annum.

It has vision to become lowest cost

Bombay Rayon Fashions (BRFL) was incorporated in 1992 and is engaged into manufacturing of fabrics and apparels. BRFL manufactures one of the most versatile and technically advanced fabrics and apparels in India. Presently, the company is the largest shirt manufacturer in India.

Currently, it has employee strength of 32000 people. Its fabric division manufactures 55 million meters per annum. Its garment unit manufactures 35 million pieces per annum.

It has vision to become lowest cost producers in the world by setting up best manufacturing units.

The Company owns 13 manufacturing facilities, including one sampling unit across the country

BRFL has presence in entire value chain starting from yarn dyeing, weaving, fabric processing, designing, garment manufacturing till retailing.

In domestic market it finished fabric are marketed through 70 distributors and more than 2000 retailers. It also exports to Middle East and EU countries.

It is setting up new manufacturing unit in Maharashtra, Bangalore and Karnataka. This will increase the yarn dyeing capacity from 1.4 million kg p.a to 11.9 million kg p.a.It will also increase fabric manufacturing capacity from 55 million metres p.a. to 235 million metres p.a. and garment manufacturing capacity from 30 million pieces p.a. to 75 million pieces p.a.

Milestones

BRFL got listed in all the stock exchanges in India in 2005.In the same years it acquired DPJ Clothing U.K.

In 2007, BRFL acquired Leela Scottish Lace a textile arm of Leela Group. This acquisition made BRFL one of the largest apparel groups in India.

In 2007, BRFL signed Memorandum of Understanding with Government of Maharashtra to expand its fabric and garment division by setting up new unit in various regions of Maharashtra. The total investment for this project is Rs.1,100 crore.

In 2008 BRFL acquired the iconic brand “Guru”.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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